You spend years building and accumulating wealth, some of it might have come to you from family inheritances. The major threats to the value of your wealth are falling values, taxation and the cost of long term care. Fortunately there is a lot you can do to protect your wealth as long as you plan far enough ahead.
Threats to the value of your wealth
Falling Values
Your assets are affected by a wide range of risks and events that conspire to reduce the value over time.
Inflation
Inflation underlies everything, quietly slicing away what your money can buy. Often misunderstood, it works like compound interest in reverse. Falling inflation still means rising prices, just not as rapidly. Beating inflation or just keeping up with it is the first priority of investment.
Costs
The cost of investing, perhaps running a portfolio can be significant so if you can reduce charges without compromising on returns, that would go a long way to help.
Markets and Events
We all watch the news and see reports of the financial markets and how they are affected by ‘events’ of the day. We hear that the FTSE index has gone up or down by so many points or a percentage change. Similarly we are told about Europe, the USA and other key markets in the world. Sitting in our homes there is little we can do to influence any of this but we can arrange our financial affairs to give at least some protection against adverse conditions. It’s no so much what is happening today but trends over time that matter.
Taxation
A news headline you will never see, “Tax is to be abolished”, sad but true. We pay tax on what we earn what we spend, save or invest and then more tax when we die. Tax legislation is complex and by understanding the regulations and working with them the amount lost to you can often be reduced. In particular Inheritance Tax can often be reduced by understanding the rules and planning ahead.
Long Term Care
One of the biggest fears we have as individuals is how we will be looked after when we cannot care for ourselves. The cost of long term care is considerable and with an aging population we cannot expect the State to meet the demand. Local Authorities have a duty to recover as much as they can from individuals. This can lead to a gradual erosion of your wealth.
Inheritance Tax can take up to 40% from your estate after allowances; the Local Authority can take up to 100%, (or maybe more!)!
Again careful planning can help alleviate this, either partially or altogether.
Wealth Protection Solutions
The solutions to the threats are centred on an individual’s financial position as a whole. Different people have different demands and expectations so one solution does not fit all.
The word planning comes up often and it cannot be emphasised enough. Good planning can help to protect your wealth. Time spent now might mean saving thousands of pounds for you or your loved ones.
What we do to help you save money
Planning your financial life can be daunting. Our role is to learn then rules so that you do not need to.
We get to know you and what is important to you. We analyse you finances and then explain potential problems to you in a straightforward manner. We will suggest appropriate solutions that are suitable
for you.
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